Banks robbing Zambians through ATM, monthly charges – CBU lecturer

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A business studies lecturer at the Copperbelt University (CBU) has criticized the country’s banking system, saying Zambians are being forced by the central bank to be robbed by banks.

Dr Lubinda Haabazoka says banks are stealing from Zambians through ATM and monthly charges and wonders how citizens can be encouraged to save while being forced to pay “ridiculous” amounts to banks for using their services.

He appealed to regulators to quickly move in and stop the exploitation that citizens are being subjected to.

“I have a problem with our current banking system. We are being forced by the central bank to be robbed by banks. For example, people pay K160 per month for premier banking with a certain bank. Then this bank charges K8 to withdraw money from the ATM. Now this bank loads K50s in ATMs such that the maximum amount one can draw is K2000. Now if one wants K8000, they need to draw 4 times paying k32 in the process. If they withdrew from inside the bank, they would pay a surcharge of over K100. The maximum amount one can withdraw from an ATM per day is K10000,” Dr Haabazoka stated in a Facebook posting.

“So if you needed K13, 000, you give a gift of over K200 if you used a combination of ATM plus over the counter transaction. The same bank will charge you K20 to withdraw from another bank’s ATM. So if your account is active, you end up paying over K2, 000 in fees per month! This is daylight robbery! One of the functions of a central bank is to enhance financial inclusion. It is mandatory that we get paid through banks. But when you bring in a bank in the question, banks take up a good portion of our salaries. If banks allowed a free one time withdraw of funds from accounts, no one was going to leave their money with the banks.”

He wondered how the informal sector, which accounts for the largest part of the country’s economy, will be formalized with the prevailing high charges from banks.

“Smart bankers make money through innovative products and not daylight robbery of hard earned cash! The excuse of saying use Visa cards cannot hold when most of our economy is informal!!! How will I swipe at Chisokone market? Or pay a villager for goats bought? Let us be realistic!!! Don’t force us into being robbed. The regulator should move in to stop this exploitation otherwise the informal sector will never formalize and the burden will always fall on a few,” stated Dr Haabazoka.

“The positive gains made in terms of financial inclusion will soon be eroded due to this ridiculous pricing. What is surprising is that these banks don’t behave the same way in Europe.”

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10 Responses to Banks robbing Zambians through ATM, monthly charges – CBU lecturer

  1. This is well said. My bank charges me K 8 per withdrawal as well. I thought I could use the cheaper ATM bank to access money from this bank , but I was shocked when I was told mockingly that they also charge the same K 8 even if I use another bank, thus resulting in a double charge. As a result, I had actually started banking in my home. When I accumulated a substantial amount, I deposited in the same Bank, but I was shocked that their Teller had the gut to actually question me. I feel the banking system does not encourage saving here.

    The Voice
    February 2, 2018 at 2:51 pm
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  2. I totally agreed with this article as bank clients we are being ripped off while we let the banks get away with murder. Something really ought to be done about these banks. Last month I used Standard Chartered Bank ATM Card in Barclay’s ATM Machine. Barclay’s message advised me I will be charged ZMK7.00 in addition Standard Chartered adds its own ZMK8.00 on the same transaction. Barclay’s machine failed to dispense the maximum ZMK4000 which was credited back to my account as ZMK4007 the 7 being the charge. Standard Chartered Bank never gave me back my ZMK8.00 on this failed transaction.

    me
    February 2, 2018 at 9:54 pm
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  3. Barclays are the culprits! withdrawals using ATM K8 & they continuously charge interest by withdrawing in your account, I thought interest must be credited to your account. And they withdraw funds from your account without telling you the reason why they just write COMMISSION 2 or 3 times in a month no reason

    chu
    February 2, 2018 at 10:27 pm
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  4. Of course, with a corrupt and an incompetent Central Bank, what do you expect?

    Blago
    February 2, 2018 at 11:53 pm
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  5. This topic does not just end with the Zambian Banks but also with our rotten network providers. I always question myself as to what has gone wrong with this country. Is Zambia truly and faithfully government or we have got thugs everywhere both in government and in the private sector ? How can a call to nearby countries like Malawi, Zimbabwe, South Africa and others within Africa cost more than K20 per less than 3 minutes conversation on cell phone ? What kind of crookedness is this in this country ? It’ s like every decision that is being made by these thug crooks is to rob the already suffering Zambians. Taxes, tariffs and everything have been increased thus, how shall be the livelihood of an ordinary Zambian ? A call to Malawi, Zimbabwe costing K10/ minute, where on earth ?

    Thus Administering Zambia
    February 3, 2018 at 6:53 am
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    • Its government to blame. The South African govt intervened in MTN and Vodacom’s over pricing airtime

      Winner not Loser
      February 5, 2018 at 9:03 pm
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  6. Its bad, whole system is corrupt.

    Kenree
    February 3, 2018 at 9:45 am
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  7. Banks are always looking for ways to scavenge on their customers. They will charge for this and that yet they are forgetting you should also charge them for storing your money and using it to lend to others. Customers must also determine how much interest they should get from these thieving banks

    Winner not Loser
    February 5, 2018 at 9:01 pm
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  8. Someone said we need a “caring” Government to put a stop to this rot,else we need Trump in Zambia!!

    lelo
    February 6, 2018 at 1:56 pm
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  9. I totally concur with the CBU lecturer that Zambians are being robbed in daylight and this robbery is being abated by the Central Bank. Take for instance the ZRA payment system whereby one Bank charges K40.00 per transaction/entry which translates to US$4.00 per entry @ K10.00/1US$. Further activity fees are also charged monthly. In the U.K Banks were made to refund their customers for such abnormal fees whereas here BOZ is sleeping and not doing their job.

    C. MULENGA
    February 9, 2018 at 3:59 pm
    Reply

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